VW top managers open to cooperation with Chinese manufacturer

Audi boss Gernot Döllner is seemingly open to offering surplus capacity in VW plants to Chinese car manufacturers. For sure, that is thinkable,” Döllner told the Financial Times. The move would “lower the entrance barrier of these competitors”, Döllner said, adding: “I believe in free trade.”

In addition, David Powels, Head of Finance at the VW brand, did not rule out – independently of Döllner – the possibility of building Chinese vehicles in VW plants. “We’re open for any discussion on any topic with any partner,” he said. “In a dynamic world, you have to keep all options open.”

While Döllner and Powels make it sound as if they are open to future discussions, concrete negotiations have apparently already taken place. Last week, Manager Magazin reported that there had been talks about joint production with an unnamed manufacturer at the VW plant in Emden, Germany, where the carmaker builds the ID.4 and ID.7. However, “the cost structure did not suit the Chinese partners,” according to a source from the Group’s top management.

In mid-January, the Reuters news agency first reported, citing Chinese government circles, that Chinese authorities and car manufacturers were interested in taking over one of the “unwanted” VW factories. A short time later, the possibility of a joint venture instead of a takeover was brought into play, as the Chinese side also realised how politically sensitive such a deal could be.

Even after the favourable statements from the two top managers, it remains to be seen which Chinese manufacturers the German group could enter into such a partnership with. VW has historically been linked to the state-owned car manufacturers SAIC and FAW, and Audi now also has its own joint venture with SAIC to build electric cars for China.

As is well known, SAIC owns the former British brand MG Motor, which offers the MG4, for example, a direct competitor to the VW ID.3. However, a European partnership with the newly acquired development partner Xpeng would also be conceivable. It is unclear whether VW would also join forces with a manufacturer in Europe that is not one of its current Chinese partners.

ft.com (paywall)